US-based beauty multinational company Coty is set to divest in some of its key beauty brands, including Wella and ghd, off the back of restricted sales during Covid-19.

On 11 May, the company announced that private-equity firm KKR & Co would buy a majority stake in its professional beauty and retail hair businesses. This reflects how the US’ lockdown is shaping a new self-care and beauty industry, with consumers prioritising personalised and low maintenance beauty regimes.

Notably, according to GlobalData’s Covid-19 tracker consumer survey – week 7, while 47% of US respondents’ reported to be buying the same amount of skincare products as before the virus outbreak, significantly less (30%) said the same for make-up (GlobalData Coronavirus (Covid-19) tracker consumer survey – Week 7 – US – Q14b_4, Q14b_8).

High levels of anxiety are likely driving demand for more products catered towards wellbeing and ‘feel good’ attributes. While traditional cosmetics have seen a stark downturn in sales, products that cater to a tailored, do-it-yourself or ‘pamper me’ positioning such as nail kits or body oils have generated increased interest. This is largely owed to the surplus time many consumers now have, leading to greater demand for tailored experiences that serve both as a stimulant and stress relief.

But what about sustainable and green practices? During the 2010s, eco-friendly claims gained a lot of attention, with demand for clean ingredients and recyclable packaging driving new innovations. While demand for this remains high, it has taken a back seat under the current situation, as consumers prioritise health, safety and convenience during the lockdown; for instance, the uptick in delivery will lead to excess packaging waste, which may be an afterthought for many consumers at this time.

What’s more, spikes in demand for often smaller eco-brands will lead to supply issues and limited stock, prompting consumers to turn to less sustainable alternatives they would not normally use. This is not set to last, however, and sustainability trends will continue to be a leading driver of innovation over the long-term.

The current lockdown is serving as a catalyst for previously only emerging trends, with digitalised lifestyles opening a pathway for agile, Insta-based start-ups that can easily engage with younger consumers through their social media feeds; these smaller brands are able to offer a point of difference with often unique, tailored and personalised offerings. It is important for players in the cosmetics and beauty industry to recognises these developments, and adapt their business models accordingly.